Gamida Cell raises $75m in convertible notes

Julian Adams  / Photo: Lior Mizrahi

The funds will be used to support manufacturing, regulatory and commercial development activities for its advanced cell therapy treatment.

Israeli advanced cell therapy company Gamida Cell (Nasdaq: GMDA) today announced the sale of $75 million of 5.875% exchangeable senior notes due in 2026 to funds managed by Highbridge Capital Management, a unit of JP Morgan.

The initial exchange price of the notes of $17.70 per share represents a 50% premium over the closing price of Gamida Cell’s ordinary shares on February 12, and a 122% premium the public offering price of Gamida Cell’s shares on December 17, 2020. Gamida Cell's current market cap is $700 million with the convertible notes reflecting a market cap of over $1 billion. Gamida Cell can force the notes to be converted if its share price reaches $23.

Clal Biotechnology Industries Ltd. (TASE: CBI) has a 5% stake in Gamida Cell and Elbit Medical Technologies (TASE: EMTC) has a 3% stake.

After this latest financing, Gamida Cell has $200 million, which will be used to support manufacturing, regulatory and commercial development activities for omidubicel and to further the preclinical and clinical development of GDA-201. Gamida Cell hopes to be able to start marketing the product in the US in 2022.

Omidubicel is an advanced cell therapy under development as a potential life-saving allogeneic hematopoietic stem cell (bone marrow) transplant solution for patients with hematologic malignancies (blood cancers),

Gamida Cell CEO Julian Adams said, "Securing this financing from a respected industry investor strengthens Gamida Cell’s financials at a pivotal time for our company. It enables us to capitalize on positive Phase II clinical results generated from omidubicel and to fund the key activities required to bring this therapy forward to patients. Moreover, these additional funds help us to advance clinical development of GDA-201 by enabling us to file an IND for this product candidate."

Moelis & Company served as a transaction advisor to Gamida Cell.

Published by Globes, Israel business news - en.globes.co.il - on February 16, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Julian Adams  / Photo: Lior Mizrahi
Julian Adams / Photo: Lior Mizrahi
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